In a joint statement, the acquisition was called a “cornerstone asset for a new brand of all-suite lifestyle hotels”.
The acquisition marks the first move in a proposed programme of acquisitions aimed to provide an “all-suite, lifestyle hotel brand in the very centre of London catering for the budget-conscious business and leisure traveller”.
Robert-Jan Foortse, head of European property investments at APG, said: “APG is delighted to be able to further broaden its hospitality investment programme.
“The Harrington Hall Hotel in South Kensington will act as a cornerstone for a new lifestyle brand of all-suite hotels which will be located in key micro-markets across Prime Central London.
“This acquisition represents an attractive opportunity to gain access to a high-quality property and add value through refurbishment, innovation and repositioning to meet the needs and aspirations of today’s travellers.”
He added: “With our partner, LCP, we intend to create a new type of accommodation for the Prime Central London market which is cutting edge in terms of place-making, whilst also promoting the highest standards in environmental and social responsibility.
“It is a vision that we share with our operating partner who will be leading the project on our joint behalf.”
Naomi Heaton, founder and CEO of the LCP, said: “LCP is very excited to be partnering with APG on what will be a new and exciting initiative in the Prime Central London hospitality market.
“Specialists in the ‘heads on beds’ sector in Prime Central London for the last 30 years, LCP has always been at the cutting edge in recognising and meeting the changing needs of the global traveller.
“With APG, we will build an affordable and innovative all-suite hotel brand across central London with a real emphasis on the guest experience.”
She added: “It will showcase the best in British design with a focus on sustainability and green technologies and there can be no better long-term capital partner for this strategy than APG.
“LCP is delighted to have secured the Harrington Hall Hotel in South Kensington as the first acquisition in the new venture, which is planned to open in Spring 2022.
“LCP will be responsible for its design, development and operation and the intention is to follow this up shortly with further acquisitions across central London’s prime neighbourhoods.”